India might ban VoIP calls

This is people who don't understand the internet trying to apply rules to the internet.

I have a hard time believing India will randomly nuke all of their call centers and IT shops in one fell swoop.

Bad side of this: Call costs will go up.

Good side of this: Costs of setting up a call center in India will go up!

The incompetence of India's Intelligence Bureau knows no bounds.

Anyone remember last year's Blackberry ban fiasco ?

Just about when Vonage announced that all calls to India is included free in the plans ... sucks!

This is a threat: authorities say this sort of thing to get the interested parties around that table to talk. This does not make the service out-of-touch, just it gets people to take notice. This strategy worked with the Blackberry, the company agreed to work with the security authorities.

What this means for privacy though is a different matter.

I think the main reason is exactly this: the local telcos don't earn money on voip telephony. India is looking to increase income - being able to bill phone calls is definitely desirable for some people.